SENATE REPORT
Senator Sidney Johnson

FOR IMMEDIATE RELEASE -- July 8, 1998

Johnson Legislation to Cut Taxes Signed into Law Tax Cuts Will Total About $90 Million

JEFFERSON CITY -- St. Joseph--Legislation sponsored by Senator Sidney Johnson that will give Missouri families almost $90 million in tax relief was signed into law today by Governor Carnahan at the State Capitol and the Joyce Raye Patterson Senior Citizen Center in St. Joseph. Johnson was the original sponsor of the "circuit breaker" property tax reduction for elderly and disabled individuals totaling $20.9 million.

"We promised to provide tax relief, and I'm pleased to say that we were able to fulfill our commitment to the people of Missouri," said Senator Johnson.

The final version of Johnson's tax cut package:

      *Increased the child deduction from $400 to $1,200 per child, coming to a savings of nearly $100 for a family of four. Total tax cut of $65.4 million.

      *Expanded the property tax break for elderly and disabled individuals, covering an additional 22,000 people. Total tax cut of $20.9 million.

      *Increased the deduction for families caring for an elderly friend or relative in their homes from $400 to $1,000. Total tax cut of $2.5 million. Page 2

"These tax breaks will go a long way towards helping families, working people and seniors on fixed incomes. I can think of no better way to put money back into the pockets of the families of Missouri," said Senator Johnson.

Additional tax cuts approved by the Legislature this year include $44 million for economic development for distressed communities and $5.5 million in sales tax exemptions.

These tax reduction packages come on the heels of last year's elimination of the state sales tax on food which saved the average Missouri family about $156 a year for a total of $230 million in tax cuts.

For more information, contact Sen. Johnson's office at 1-800-488-0593.

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